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VIRGINIA DEPARTMENT OF SOCIAL SERVICES INCOME

10/24 VOLUME V, PART XI, PAGE 10

7. Other Third-Party Payments

Money which is legally obligated and otherwise payable to the household must be counted as income and not excluded as vendor payments when they are diverted to a third party by the provider of the payment for a household expense. Court-ordered support or alimony payments and wages are examples of payments that will count as income regardless of diverted payments to third parties.

4. Infrequent or Irregular Income

Any income in the certification period that is received too infrequently or irregularly to be reasonably anticipated, but which is not more than $30 in a calendar quarter. This may include interest payments on bank accounts or other financial instruments if the average monthly payment is less than $10.00 per month.

5. Loans

All loans. The loan may be from a private individual as well as from a commercial institution. Verify that money received by the household is a loan if circumstances are questionable as per Part III.A.2. When verifying that income is exempt as a loan, a legally binding agreement is not required. A simple statement of both parties that indicates that the payment is a loan and that the household must repay the loan will be sufficient verification. If the household receives payments on a recurrent or regular basis from the same source however, but claims the payments are loans, the BPS may also require that the lender provide a statement that addresses that repayments are being made or that payments will be made according to an established repayment schedule.

6. Reimbursements

Reimbursement on past or future expenses, to the extent that:

a. They do not exceed actual expenses.

b. They do not represent a gain or benefit to the household.

Reimbursements for normal household living expenses, such as rent or mortgage, personal clothing, or food eaten at home are a gain or benefit, and, therefore, are not excluded. To exclude this money, these payments must be for an identified expense, other than normal living expenses, and the recipient must use the money for the purpose intended.

When a reimbursement covers multiple expenses, including a flat allowance, it is not necessary to identify each expense separately if none of the reimbursement covers normal living expenses.

The amount by which a reimbursement exceeds the actual incurred expense will count as income. It is not necessary to consider whether reimbursements exceed actual expenses

TRANSMITTAL #35